This Roadmap identifies and builds on existing trends and gaps in the regulation of carbon markets and establishes six key pillars for their design or reform. It suggests that governments seeking to regulate their approach to carbon markets should first begin with identifying a clear role for carbon markets to ensure they provide (1) an efficient and effective financing framework and (2) align with an end state of domestic and global net-zero. Next, they should create or reform substantive regulation to ensure that the mitigation outcomes derived from engagement with carbon markets uphold (3) ecosystem (environmental and social) integrity, while delivering and respecting (4) equitable outcomes and responsibilities across relevant stakeholders. Lastly, governments should rigorously implement and oversee such regulation, establishing effective provisions for carbon market (5) enforcement and oversight, and promoting their (6) ease of use.
Authors: Injy Johnstone, Sindi Kuci, Thomas Hale, Bhavya Gupta, Varnika Chawla, Kenneth Nicholas.
